Flinders has a July to Remember as InvestorIntel’s Graphite Sector Stocks Rose Sharply
InvestorIntel Graphite & Graphene Month in Review (July 2013): The InvestorIntel Graphite & Graphene members’ stock performance improved significantly during the month of July, collectively up an impressive +15.34%. July’s performance is a noteworthy improvement over June’s +1.03% increase and the decline of -3.82% in May.
Leading the July charge was Flinders Resources Ltd. (TSXV: FDR) with a stellar stock performance, increasing a whopping +79.22% above the previous month’s closing level of 38.5 cents. On July 9th, Flinders announced that the first truckload of reprocessed graphite from its Woxna Graphite Mine in Sweden had been delivered to Germany. The drying, screening and packing circuits of the Kringel processing plant were successfully restarted in May after the winter break and production of graphite from stockpiled material is presently underway. Several hundred tonnes of graphite remain from a stockpile that was built up when Woxna was last mined up to 2001. President and Chief Executive Officer Martin McFarlane was pleased to state that, so far this year, Flinders has delivered commercial volumes of graphite to Swedish and German customers – and, more importantly, has orders for the balance of Woxna’s stockpiled graphite. Furthermore, a recent metallurgical test of the Woxna deposit yielded jumbo flake graphite and enhanced purity. The recent announcements made by Flinders Resources have helped the company reinstate its brand in Europe – and make shareholders very happy.
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Zenyatta Ventures Ltd. (TSXV: ZEN | OTCQX: ZENYF) outperformed itself from the previous month, delivering another strong showing. The stock climbed +38.98% on the TSX Venture Exchange and +42.53% on New York’s OTCQX International. July turned out to be the best month the company’s stock had even seen, reaching an all-time high of CAD$5.00 on the TSXV (July 26, 2013) and USD$4.85 on the OTCQX (July 26, 2013). The Thunder Bay, Ontario-based exploration company had two major announcements regarding its ultra-high purity graphite deposit. On July 2nd, the company announced considerable assay results from five drill holes drilled on the East Pipe of the 100% owned Albany Graphite Deposit (the largest and only new magmatic hydrothermal graphite deposit being developed in the world), located in northeastern Ontario, Canada. Subsequently, on July 31st, Zenyatta announced significant graphitic carbon (“Cg”) assay results from nine additional drill holes on its East Pipe property. President and CEO, Aubrey Eveleigh, stated, “These latest results on the East Pipe continue to demonstrate the excellent vertical continuity and exceptional size potential of the graphite deposit. Graphite intersections appear to be correlating extremely well with the shape of the ground geophysical conductors. Drilling to date on the West Pipe is also showing significant widths of graphitic breccia with great continuity. The current campaign will continue there until sufficient drill holes have been completed to delineate a mineral resource, following which a NI 43-101-compliant resource estimate will be prepared by RPA (formerly Roscoe Postle & Associates Inc.) for both the East and West pipes.”
Shares of Standard Graphite Corp. (TSXV: SGH | OTCQX: DARDF) beat its already impressive June performance by increasing +26.67% on the Canadian exchange and +11.74% in the US market. Although the company did not have any noticeable media coverage during July, Standard Graphite was mentioned in TechNavio’s Report, “Global Graphite Market 2012-2016”.
Galaxy Graphite Corp. (TSXV: GXY) was up +12.50%, ending the month at .045 cents. On July 10th, Galaxy announced that it had received the necessary permit to allow the commencement of a drill program on its Laurier graphite project. The permit, issued by the Ontario Ministry of Northern Development and Mines on July 5, 2013, is valid for three years. The Laurier graphite property is located in Laurier Township, Ontario, approximately 40 kilometres south-southeast of North Bay, Ontario. The property is located in the highly prospective Central Metasedimentary Belt (CMB) of the Grenville Province, host to many active graphite projects. The host rocks for the target zone are graphitic paragneisses. The property covers a total of approximately 2,300 hectares on 46 mining claims. Mapping and prospecting identified abundant graphite, occurring in a quartz-feldsparbiotite-graphite schist metasedimentary unit outcropping in the centre of the grid. Channel sampling of outcrops, both across and along the strike of the zone, returned assays of 3% to 22%. Galaxy was also mentioned in TechNavio’s graphite report.
London-based TechNavio is a leading global technology research and advisory company, focusing on emerging technology trends that can shape the market. On July 12th, TechNavio published the above-referenced “Global Graphite Market 2012-2016” report, in which the company’s analysts forecast the global graphite market to grow at a compound annual growth rate (CAGR) of 5.52% (2012 to 2016). A key factor contributing to this ongoing market growth is the increasing use of graphite in lithium ion batteries; however, there are a plethora of critical and necessary applications for both graphite and graphene, making them much-needed commodities. The TechNavio report identified Focus Graphite Inc. (TSXV: FMS | OTCQX: FCSMF) as a “key vendor dominating the graphite space.”
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